Forum Energy Technologies (FET) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 16% year-over-year to $208 million, driven by the Variperm acquisition and growth in Subsea and Stimulation and Intervention product lines.

• Adjusted EBITDA grew 55% year-over-year to $26 million, with strong free cash flow and improved liquidity.

• Net loss for Q3 2024 was $15 million ($1.20 per share), primarily due to higher interest expense, foreign exchange losses, and debt extinguishment costs.

• Continued innovation with new products like MagnaGuard and Unity ROV system, expanding addressable markets.

• Completed $100 million senior secured bond offering, reducing interest rate and extending debt maturity.

Financial highlights

• Q3 2024 consolidated revenue was $208 million, up 16% year-over-year; year-to-date revenue was $615.4 million, up 11.2%.

• Q3 adjusted EBITDA was $26 million, with a margin of 12.4%; year-to-date adjusted EBITDA was $77.8 million.

• Q3 free cash flow was $25 million; year-to-date free cash flow totaled $48.2 million.

• Q3 2024 net loss was $14.8 million; year-to-date net loss was $31.8 million.

• Q3 gross profit was $65.7 million (31.6% margin); operating income was $8.9 million.

Outlook and guidance

• Q4 2024 revenue expected at $190–210 million; adjusted EBITDA forecasted at $22–26 million.

• Full-year 2024 free cash flow guidance raised to $60–70 million; EBITDA guidance reaffirmed at $100–110 million.

• 2025 U.S. drilling and completions activity could be down as much as 5% from 2024; international demand expected flat to slightly up.

• Free cash flow for 2025 expected to be $50–60 million in a flat EBITDA scenario.

• 2024 capital expenditures projected at $10 million, focused on machinery and equipment replacement.